California income taxes
11-18-2019, 09:46 PM
#32
Gets Weekends Off
Joined APC: Mar 2015
Posts: 289
It most certainly doesn't have a huge budget surplus. That only happens if you don't put your unfunded liabilities into the budget which in this case they didn't making it look like the are financial geniuses when in actuality it is a ponzi scheme in that the people today have to keep putting money in for the people of yesterday to keep getting paid.
Right now there is over 1 TRILLION IN UNFUNDED PENSIONS. That doesn't even take into account the cost of non-pension benefits for state workers, such as health care for retired government employees.
To make up for this shortfall every citizen of California would have to contribute an additional $33,000 in taxes. If we just count the Taxpayers it would be an additional $74,000 in taxes to every individual taxpayer.
https://www.forbes.com/sites/patrick.../#49d2201737b5
https://www.statedatalab.org/state_d...ail/california
This means as more businesses leave there will be less revenue to collect and as more welfare recipients arrive due to it being very generous with other peoples money and a sanctuary State the budget will continue to increase.
And yes thousands of business and people are fleeing California. Most of them are middle class professionals that are tired of paying large amounts of taxes and can do their work anywhere else. As a matter of fact there were 38,000 more people that left California this year than came in.
https://www.cnbc.com/2019/02/12/grow...te-survey.html
https://qz.com/1599150/californias-p...ing-very-soon/
Over 1,800 companies have left California last year due to incredibly high taxes and onerous government red tape.
https://www.bizjournals.com/bizjourn...year-with.html
https://www.investors.com/politics/e...s-leave-taxes/
When people keep saying stupid thing like it is the 5th largest economy in the world will somehow keep it from going bankrupt. If you spend more than you take in it doesn't matter how large your economy is it will tank.
The fact that California is driving out the middle class will leave only those with a lot of money and no money at all which I find kind of funny due to a large portion of the population of California believes there shouldn't be income inequality yet due to their governance it is one of the states with the highest income inequality in the nation and increasing every year.
Right now there is over 1 TRILLION IN UNFUNDED PENSIONS. That doesn't even take into account the cost of non-pension benefits for state workers, such as health care for retired government employees.
To make up for this shortfall every citizen of California would have to contribute an additional $33,000 in taxes. If we just count the Taxpayers it would be an additional $74,000 in taxes to every individual taxpayer.
https://www.forbes.com/sites/patrick.../#49d2201737b5
https://www.statedatalab.org/state_d...ail/california
This means as more businesses leave there will be less revenue to collect and as more welfare recipients arrive due to it being very generous with other peoples money and a sanctuary State the budget will continue to increase.
And yes thousands of business and people are fleeing California. Most of them are middle class professionals that are tired of paying large amounts of taxes and can do their work anywhere else. As a matter of fact there were 38,000 more people that left California this year than came in.
https://www.cnbc.com/2019/02/12/grow...te-survey.html
https://qz.com/1599150/californias-p...ing-very-soon/
Over 1,800 companies have left California last year due to incredibly high taxes and onerous government red tape.
https://www.bizjournals.com/bizjourn...year-with.html
https://www.investors.com/politics/e...s-leave-taxes/
When people keep saying stupid thing like it is the 5th largest economy in the world will somehow keep it from going bankrupt. If you spend more than you take in it doesn't matter how large your economy is it will tank.
The fact that California is driving out the middle class will leave only those with a lot of money and no money at all which I find kind of funny due to a large portion of the population of California believes there shouldn't be income inequality yet due to their governance it is one of the states with the highest income inequality in the nation and increasing every year.
11-18-2019, 09:48 PM
#33
Perennial Reserve
Joined APC: Jan 2018
Posts: 12,150
Except it’s only getting worse:
11-18-2019, 09:59 PM
#34
Perennial Reserve
Joined APC: Jan 2018
Posts: 12,150
And of course because if that it’s getting more unequal:
The Census Bureau reported that California still has the highest level of functional poverty of any state, averaging 18.2% of its 40 million residents impoverished during the three preceding years.
The number comes from a “supplemental” method of calculating poverty that includes a wider array of income measures than the long-standing official poverty rate and adjusts for the cost of living.
California’s official rate, 12.5%, is virtually identical to the national rate, but it soars to the top — or bottom — of the supplemental list largely due to its extraordinarily high cost of living.
Our supplemental rate is five percentage points higher than the national rate and is nearly three times as high as Iowa’s rate, 6.8%, the nation’s lowest. It’s also markedly higher than those of neighboring states such as Oregon (11.1%), Arizona (12.8%) and Nevada (13.7%), and arch-rival Texas (14.4%)
The number comes from a “supplemental” method of calculating poverty that includes a wider array of income measures than the long-standing official poverty rate and adjusts for the cost of living.
California’s official rate, 12.5%, is virtually identical to the national rate, but it soars to the top — or bottom — of the supplemental list largely due to its extraordinarily high cost of living.
Our supplemental rate is five percentage points higher than the national rate and is nearly three times as high as Iowa’s rate, 6.8%, the nation’s lowest. It’s also markedly higher than those of neighboring states such as Oregon (11.1%), Arizona (12.8%) and Nevada (13.7%), and arch-rival Texas (14.4%)
11-18-2019, 10:01 PM
#35
Social Media retired.
Joined APC: May 2018
Posts: 840
Just throwing out an idea here: could you form an LLC and then buy the property as an investment/rental under that company? Get a couple of crashpadders in there for legitimacy? Or buy the property under your spouse’s name, assuming you are married? Google into the RV crowd - a lot of them deal with residency issues due to their nomadic lifestyle. IMHO, on paper, as long as you dot your I’s, cross your T’s, and comply with the laws, it can be done - just might be an incredible pain in the rear and not worth the trouble though... FWIW, I got rid of the commuter car I kept (registered) in my domicile (SDF) as I didn’t want even the slightest bit of worry from the local tax man’s wandering eye. OTW, I’d say reach out to a Californian based tax attorney with aviation/transportation worker experience/specialty.
11-18-2019, 10:53 PM
#36
Gets Weekends Off
Joined APC: Mar 2015
Posts: 289
Except the net isn’t really the point. It’s the TAX BASE of ALL THE OUTGOING PEOPLE compared to the tax base of all the incoming people. California’s losing middle income people and gaining poor people.
And of course because if that it’s getting more unequal:
https://calmatters.org/commentary/hi...-1-in-poverty/
And of course because if that it’s getting more unequal:
https://calmatters.org/commentary/hi...-1-in-poverty/
Tax rates for middle class incomes in CA are actually not that bad. An individual making $50,000 a year has an effective tax rate of 3.53%, not an outlier among most states.
CA’s main problem is the high cost of housing which has multiple contributing factors e.g. nimbyism, the reluctance of long term homeowners to sell their houses due to Prop 13, high demand bc of a red hot economy, and the simple fact that it’s California.
11-18-2019, 11:31 PM
#37
Gets Weekends Off
Joined APC: Dec 2005
Posts: 8,922
California pensions are a huge burden.
First, god bless our officers, firefighters, teachers, etc. these state employees have tough jobs and deserve every penny for what they signed up for long ago.
But the pensions are severely underfunded and going to reach a breaking point.
A CHP Officer can retire at 50 and get 90% of his max salary (which by this level the average is about 100k). The private market cost for a similar annuity is $2.6 million. This is unsustainable. Name a private sector where your average John Doe workers have a 2.6 mil annuity retirement sitting waiting to be paid out. It’s not realistic, and I don’t see how the state can expect this to be realistic and paid out.
I don’t know a legit solution that doesn’t screw current retirees and ones about to retire. But something needs to be changed for anyone starting now and for or anyone under 10 yrs longevity.
CalPERS. More like CalBROKE!
First, god bless our officers, firefighters, teachers, etc. these state employees have tough jobs and deserve every penny for what they signed up for long ago.
But the pensions are severely underfunded and going to reach a breaking point.
A CHP Officer can retire at 50 and get 90% of his max salary (which by this level the average is about 100k). The private market cost for a similar annuity is $2.6 million. This is unsustainable. Name a private sector where your average John Doe workers have a 2.6 mil annuity retirement sitting waiting to be paid out. It’s not realistic, and I don’t see how the state can expect this to be realistic and paid out.
I don’t know a legit solution that doesn’t screw current retirees and ones about to retire. But something needs to be changed for anyone starting now and for or anyone under 10 yrs longevity.
CalPERS. More like CalBROKE!
11-19-2019, 04:35 AM
#39
Gets Weekends Off
Joined APC: Feb 2014
Position: Head pillow fluffer, Assistant bed maker
Posts: 1,321
It’s readily apparent that the haters are jealous of California’s awesome weather, resources and culture. It’s ok, just be honest about it.
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